Airbus has announced the discovery of an industrial quality issue affecting the metal panels of a limited number of its A320-family aircraft. This issue, confirmed on Monday and first reported by Reuters, poses a new challenge for the company following a recent recall of its jets due to a software bug. The news led to a significant drop in Airbus shares, which fell as much as 10 percent at one point, ultimately closing down by 5.8 percent.
The quality issue comes as Airbus is striving to meet ambitious delivery targets for the year. A spokesperson for the company stated that inspections of all potentially affected aircraft are underway, and only a portion will require further action. “The source of the issue has been identified, contained, and all newly produced panels conform to all requirements,” the spokesperson noted, adding that the problem originated with a supplier, although they did not disclose the supplier’s identity.
Delivery Targets Under Pressure
The industrial quality issue complicates Airbus’s efforts to fulfill its delivery goals. The company has already faced challenges due to a software recall that disrupted operations at airports worldwide. Despite these setbacks, industry sources indicate that the suspected production flaw has not yet affected aircraft currently in service.
Some deliveries are reportedly being impacted, although the exact number and duration remain unclear. In November 2023, Airbus delivered 72 aircraft, which was fewer than many analysts expected, bringing the year’s total to 657. The company is aiming for approximately 820 deliveries by the end of the year, which would require a record performance of more than 160 jets in December alone. The current record for December deliveries is 138, set in 2019.
Analysts remain divided on whether Airbus can achieve its delivery targets, which are crucial for determining revenue and cash flow, as airlines typically pay a significant portion of a plane’s value upon delivery. Jefferies analyst Chloe Lemarie, who monitors aircraft handovers, noted that November’s performance was weaker than anticipated. She maintains that the target remains within reach, attributing this to an overall increase in production.
Independent aviation analyst Rob Morris suggested that Airbus could reach around 800 deliveries by year-end. He acknowledged that this figure might be sufficient for the company to claim success based on its forecast, but he also cautioned that the final count could be “marginally lower.”
As Airbus navigates these challenges, it will be crucial for the company to address the quality issue effectively while accelerating production to meet its ambitious targets. The coming weeks will be pivotal for the planemaker as it strives to recover from recent setbacks and fulfill its commitments to airline customers, including major operators like Lufthansa and easyJet.
